With sizeable exposure to iron ore and copper – two of the biggest beneficiaries in the post-pandemic world, BHP reported strong H1 results. The impact was such that losses in the fossil divisions were completed overshadowed. Moreover, management increased the interim dividend by 55%. However, we believe that BHP is still vulnerable to various external factors and their impact should aggravate once pricing normalisation begins in the iron ore and copper markets.
17 Feb 2021
Iron ore- and copper-driven dividend euphoria, but underlying vulnerabilities persist
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Iron ore- and copper-driven dividend euphoria, but underlying vulnerabilities persist
BHP Group Ltd (BHP:LON) | 2,320 -1020.8 (-1.9%) | Mkt Cap: 117,595m
- Published:
17 Feb 2021 -
Author:
Varun Sikka -
Pages:
4
With sizeable exposure to iron ore and copper – two of the biggest beneficiaries in the post-pandemic world, BHP reported strong H1 results. The impact was such that losses in the fossil divisions were completed overshadowed. Moreover, management increased the interim dividend by 55%. However, we believe that BHP is still vulnerable to various external factors and their impact should aggravate once pricing normalisation begins in the iron ore and copper markets.